Friday, March 18, 2016
Rising Stock Market Vollatility - Watch out below! / Stock-Markets / Stock Markets 2016
Good Morning!
I have profiled the 4.3-year trendline which was violated yesterday. You can see that there was another false breakout on September 29. Whether that breakout remains standing at the end of the day is uncertain, since there is a double Trading Cycle Pivot on Saturday.
Today is all about options expiration. This week is known as quadruple witching, which adds to the potential volatility.
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Friday, March 18, 2016
$NYAD (NYSE Advance-Decline Issues) and $SPX (S&P 500 Index) / Stock-Markets / Stock Markets 2016
The AD line is making higher highs. There is virtually no doubt at this point that the 7 year cycle low is complete and a new 7 year cycle has begun
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Friday, March 18, 2016
It's a Currency and Financial Extinction Level Event / Stock-Markets / Financial Crisis 2016
The Financial Repression Authority is pleasured to be revisited by Ty Andros, Chief Investment Officer of the Sanctuary Fund. FRA Co-Founder Gordon T. Long has has a stirring conversation with Mr. Andros on a number of current economic developments and consequently, the things to unfold.
Read full article... Read full article...Ty began his commodity career in the early 1980's and became a managed futures specialist beginning in 1985. Mr. Andros duties include marketing, sales, and portfolio selection and monitoring, customer relations and all aspects required in building a successful managed futures and alternative investment brokerage service. Mr. Andros attended the University of San Diego, and the University of Miami, majoring in Marketing, Economics and Business Administration. He began his career as a broker in 1983, and has worked his way to the creation of TraderView of which he is the CEO. Mr. Andros is active in Economic analysis and brings this information and analysis to his clients on a regular basis. Ty prides himself on his personal preparation for the markets as they unfold. Ty is an expert in applying the indirect exchange method as a principle of the Austrian School of Economics in his investing approach.
Friday, March 18, 2016
Is This The Debt Jubilee? / Interest-Rates / Global Debt Crisis 2016
Not so long ago the financial world viewed certain numbers as limits beyond which lay trouble. Interest rates near zero, for instance, were thought to risk destabilizing the banking system. And government fiscal deficits above 3% were considered so dangerous that exceeding this level was prohibited by the Maastricht treaty that all euorzone members were required to sign.
Those numbers -- 0% and 3% -- are still considered bad. But now for the opposite reason: They're insufficiently aggressive.
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Friday, March 18, 2016
Market Explodes on FOMC News / Stock-Markets / Stock Markets 2016
The stock market indices had an interesting session with a mixed close, although they did come way off the lows early on when the indices had an early dip. They then stair-stepped their way higher in a 5-wave advance, pulled back to hold support, and then rallied back to resistance. When they couldn’t get through, they backed off into the close. At the end of the day, they did close green on St. Patrick’s Day on the blue chips.
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Thursday, March 17, 2016
Gold and Silver March Madness / Commodities / Gold and Silver 2016
"The main thing is that the debt is in dollars. So we can't run out of cash--we print the stuff. Suppose that foreigners decide we're not reliable. How does that drive up interest rates? The Fed controls short-term interest rates, and long-term interest rates reflect expected short rates. How's that supposed to happen?" Paul Krugman, Interview on CNNMoney
Well, at least now we know why gold was knocked down lower in the paper trading earlier this week.
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Thursday, March 17, 2016
Russian Stock Market Great Long Term Buy: Inflation Down 50% YOY / Stock-Markets / Russia
For a long time, we have been stating that the Sell-off in both the Ruble and the Russian stock market provided the astute investors with a great long-term buying opportunity. Well, This chart proves that things are getting better and that the Sanctions that the West imposed on Russia at the behest of the America was a stupid idea, but more importantly, it has made Russia even stronger. The chart below is proof of this; inflation is down over 50% year over year. Translation things must be getting better.
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Thursday, March 17, 2016
Forex Big Reaction to Little Action / Currencies / Forex Trading
Yesterday, the Fed announced that it had decided to leave the interest rates unchanged. However, this doesn't mean that nothing changed. There was something that the Fed said that altered the outlook.
What was it? The Fed now signals two rate hikes in 2016 instead of four. Some investors even say that the Fed's tightening cycle is over. Either way that's a bearish piece of information for the USD Index, so yesterday's move lower in it may (!) be followed by a few additional daily downswings (and it appears that we are seeing one now).
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Thursday, March 17, 2016
Kuroda, Draghi, then Yellen Pull the Trigger on Blanks / Stock-Markets / Stock Markets 2016
Good Morning!
As expected, the SPX Premarket is down again this morning. The “goose” that the markets got at the FOMC announcement are but a temporary reprieve from what is to come.
I will be gone all day to a conference in Indiana, so here is the level at which the market trend turns south. The trendline is self-evidennt, along with Intermediate-term support at 1994.28 as the confirmation of the change in trend.
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Thursday, March 17, 2016
More Stock Market Volatility Following Fed's Decision Release - Uptrend Reversal Or Just Consolidation? / Stock-Markets / Stock Markets 2016
Briefly: In our opinion, speculative short positions are favored (with stop-loss at 2,050, and profit target at 1,900, S&P 500 index).
Our intraday outlook is bearish, and our short-term outlook is bearish, as we expect a downward correction or short-term uptrend's reversal at some point. Our medium-term outlook remains bearish, as the S&P 500 index extends its lower highs, lower lows sequence. We decided to change our long-term outlook to neutral recently, following a move down below medium-term lows:
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Thursday, March 17, 2016
Fractal Analysis Shows Coming 70s Style Gold Stocks Rally From Even Cheaper Levels / Commodities / Gold and Silver Stocks 2016
In terms of the gold price, gold stocks are currently at better value than at the beginning of the bull market in 2001. In 2001, at the bottom of the gold bull market, the XAU to Gold ratio was around 0.2 compared to 0.05 today. In other words, gold stocks are cheaper than they were in 2001. In fact, they are cheaper than they have been the last 78 years at least.
If you are confident that the gold bull market is about to continue, and trust gold stocks as the best “vehicle” to take advantage of the gold bull market, then it is probably an ideal time to get into these gold stocks.
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Thursday, March 17, 2016
Oil Price Won't Stage A Serious Rebound Until This Happens / Commodities / Crude Oil
Oil prices have shown signs of life over the past few weeks, as production declines in the U.S. raise expectations that the market is starting to adjust. As a result, Brent crude recently surpassed $40 per barrel for the first time in months.
A growling list of companies are capitulating, announcing production cuts for 2016. Continental Resources, for example, could see output fall by 10 percent. A range of other companies have made similar announcements in recent weeks. The energy world has been speculating about declines from U.S. shale, and the declines are finally starting to show up in the data.
Thursday, March 17, 2016
FOMC Bring on the Clowns, Dollar, Gold and Bonds / Stock-Markets / Financial Markets 2016
Honestly, more and more that seems to be the best phrase to describe when waiting for these FOMC statements to be revealed.
If we are not seeing a case of deliberate attempts to break the back of their own currencies among these Central Bankers, then "Scotty, beam me up!"
With the Fed Fund futures showing sharp increases AHEAD of the FOMC statement of rate hike probabilities, today's ultra dovish statement had everyone positioned on the wrong side of the currency markets yet once again. The result was yet another unleashed chaos courtesy of our Central Bankers.
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Thursday, March 17, 2016
US Dollar Important Chart / Currencies / US Dollar
Last week I showed you this potential H&S top forming on the USDU which is a more evenly balanced index for the US dollar which actually trades as an ETF.
http://www.wisdomtree.com/etfs/fund-details-currency.aspx?etfid=91
I built this chart using a line chart and then leaving the trendlines in place I converted to a bar chart. As you can see it has been backtesting the neckline for the last week or so along with the 200 dma. This chart shows a reversal pattern which sets up a downtrend of some kind. This is an important development.
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Thursday, March 17, 2016
Lifetime ISA - Another Boost for UK House Prices and Worsen Housing Market Crisis / Personal_Finance / ISA's
George Osborne's flag ship personal savings account change of Budget 2016 is the announcement of the Lifetime ISA. Which is the latest of a myriad of policies aimed squarely at stoking UK housing market demand, effectively QE for first time buyers as the government seeks to hand out £1,000 for every £4,000 saved as long the monies are used to either buy ones first home or to fund retirement.
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Thursday, March 17, 2016
UK Economic Growth Evaporating, Worse to Come than OBR Budget 2016 Forecasts / Economics / UK Economy
The governments fantasy projections on the economy made by their Office for Economic Propaganda (OBR) shortly following the Conservatives May 2015 election victory are fast unraveling as the OBR's latest propaganda nudged expected growth for 2016 lower to 2% from 2.4%, and growth for 2017 lower to 2.2% from 2.5%, whilst maintaining more distant year overly optimistic forecasts.
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Thursday, March 17, 2016
UK Government Debt Propaganda Continues as OBR Revises Borrowing Higher / Economics / UK Debt
The Office of Budgetary Responsibility has once more dutifully pumped out economic propaganda for the UK government in its latest report, where the most notable revision was to increase the amount the government will borrow over its term in office from the original £115 billion (May 2015) to now £178bn, a 54% increase in the amount they said they would borrow at the outset, and which is set against their November 2015 revision higher to £143bn.
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Wednesday, March 16, 2016
State of the Global Financial and Commodity Markets Report 2016 / Stock-Markets / Financial Markets 2016
Dear Investor,
State of the Global Markets Report -- 2016 edition, one of the most anticipated annual reports for investors and technical analysts, has just been released, and for a limited time, it is available, free of charge. Soon it will cost $99 per download, where it will stay for the rest of the year.
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Wednesday, March 16, 2016
The War on Cash is Real! / Personal_Finance / War on Cash
Gordon T Long, Co-Founder of FRA interviewed Egon von Greyerz in Zurick. Egon Von Greherz is the founder of Matterhorn Asset Management who has worked as a financial director for over 17 years in Geneva, and has been advocating for wealth preservation through Gold for over 13 years. MAM now has plans in over 40 countries for investors to place their savings into physical Gold storage for preservation in the world’s largest Gold vault in Switzerland.
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Wednesday, March 16, 2016
FOMC Statement - Backing Off On the Rate Increases, Lowering Forecasts / Interest-Rates / US Interest Rates
The Fed recognized that growth is slow, and that inflation remains subdued.
I include a chart of the real median household income to demonstrate why the recovery is so wobbly. Demand and investment are weak because people have less money to spend. Wow, what a surprise.